Dubai’s Virtual Assets Regulatory Authority (VARA) has signed a memorandum of understanding (MoU) with Mastercard, according to the Emirates News Agency (WAM).

The VARA Mastercard agreement aims to support the growth of the emirate’s virtual assets sector by combining the regulator’s expertise with Mastercard’s experience in payments technology.

Under the MoU, both parties will explore initiatives to support founders and emerging businesses in the sector, including opportunities to experiment within regulatory sandboxes.

Other areas of focus include deepening industry engagement, encouraging knowledge sharing and identifying ways to support new technologies and market participants.

Mastercard is drawing on its work building the infrastructure needed for stablecoins and other forms of digital value to be used in everyday payments.

This work includes its recent acquisition of BVNK, a stablecoin infrastructure provider.

VARA Chief Executive Officer Matthew White said cooperation between regulators and major industry players is needed to build a market where innovation can grow alongside strong regulatory standards.

He added that working with Mastercard reflects the authority’s focus on responsible innovation and market confidence.

Gina Petersen-Skyrme, Senior Vice President and Country Manager for the UAE and Oman at Mastercard, said digital assets could give people and businesses new ways to exchange value.

In her view, realising that potential depends on clear regulatory frameworks, reliable infrastructure and close cooperation across the industry.

The MoU forms part of Dubai’s wider economic plan, known as D33, which looks to innovation and digital change to drive the emirate’s future growth.

Featured image: Edited by Fintech News UAE, based on image by Bozo_Studio via Magnific.